SIPP Portfolio - Critique and feedback please

AlphaWaves

Hi,

I am looking at moving my existing pension arrangements into a SIPP. I have drafted the below as a potential portfolio. Could I kindly ask the forum for some feedback for any glaring issues, obvious room for improvement etc...?

one area where I am unsure is bonds and how best to allocate the investment between these. At present i have adopted the model approach from Tim Hales smarter investing, however this would have no corporate bond fund which seems a feature of many of the multi-asset funds such as lifestrategy. Should i be including this? or indeed other assets? if so are there any recommended funds to include?

£55k initial investment; Time horizon is 20+ years; 80% equity; combined OCF on the below works out circa 0.17% excluding platform fees etc...

UK Market (developed) - 5% - Fidelity Index UK P
Global Market ex UK (developed) - 47% - L&G International Index Trust
Global smaller companies (developed) - 8% - Vanguard Glbl Small-Cap Idx GBP Acc
Emerging markets - 12% - iShares Emerging Mkts Eq Idx (UK) D Acc
Global commercial real estate - 8% - iShares Glb Prpty Secs Eq Idx (UK) D Acc
Bonds (AA short-dated 0-5 yrs) - 10% - Vanguard UK Govt Bd Idx GBP Acc
Inflation linked bonds (AA Short-dated 0-5 yrs) - 10% - Vanguard UK Infl-LnkdGltIdx A Grs Acc

Dox

No mention of your age or attitude to risk, so bit tricky to comment.

Where are your 'existing arrangements' - DB pension? DC pension? How do the charges compare with those you'll incur in a SIPP?

AlphaWaves

Apologies for not including those details.

Age 32. Average attitude to risk, willing to be a bit higher risk initially due to length of investment.

Current pension is a personal pension with Scottish widows all in their pension portfolio three multi asset fund. £1500 per month invested by myself.

Subject to platform choice Sipp charges should be less than current based on the funds noted above

Thrugelmir

AlphaWaves wrote: »

Age 32. Average attitude to risk, willing to be a bit higher risk initially due to length of investment.

Risk equates to permanent capital loss. There's no recovery from zero.

£55k isn't large enough sum to start speculating with by creating your own asset allocations. You'd be better off continuing to allow a fund manager to decide upon the best allocation. Charges aren't the be all and end all. Investing in areas such as Emerging Markets does require good research (expensive to undertake). Not really suitable for tracker orientated style investing.

If you wish to expand your horizions. I'd suggest a read of

"Harriman's New Book of Investing Rules: The do’s and don’ts of the world’s best investors"

You should find yourself with a more balanced approach going forward. Rather than a belief in any particular style of investing. After all most are fads that are cyclical in nature. Coming and going as the next generation of investors believes that they've reinvented the wheel.

londoninvestor

AlphaWaves wrote: »

Bonds (AA short-dated 0-5 yrs) - 10% - Vanguard UK Govt Bd Idx GBP Acc
Inflation linked bonds (AA Short-dated 0-5 yrs) - 10% - Vanguard UK Infl-LnkdGltIdx A Grs Acc

Neither of those two funds focus on short-dated bonds - they invest across the maturity range, and most of their holdings will be longer-dated than 5 years.